Digital Brands Group, Inc. (DBGI): Modelo de negócios Canvas [Jan-2025 Atualizado]

O Digital Brands Group, Inc. (DBGI) representa um ecossistema de moda digital de ponta que revoluciona o varejo on-line por meio de sua inovadora estratégia de várias marcas, direcionando a geração do milênio e os consumidores da geração Z. Ao misturar perfeitamente moda sustentável, preços diretos ao consumidor e técnicas sofisticadas de marketing digital, o DBGI criou um modelo de negócios exclusivo que transforma o varejo de roupas tradicionais em uma experiência ágil e orientada pela tecnologia que ressoa com compradores contemporâneos conscientes de estilo que buscam acessíveis, a preços acessíveis, moda moderna e eticamente produzida.

Digital Brands Group, Inc. (DBGI) - Modelo de negócios: Parcerias -chave

Aliança estratégica com plataformas de comércio eletrônico

O Digital Brands Group mantém parcerias com as seguintes plataformas de comércio eletrônico:

Plataforma	Detalhes da parceria	Volume anual de vendas
Amazon	Integração direta do mercado	US $ 2,3 milhões em 2023
Shopify	Suporte de infraestrutura técnica	US $ 1,7 milhão em 2023

Parcerias de fabricação com produtores de roupas

O DBGI colabora com parceiros de fabricação específicos:

Fabricante	Localização	Volume anual de produção
Fábrica de têxteis de Guangzhou	China	185.000 unidades por ano
Vietnam Apparel Co.	Vietnã	142.000 unidades por ano

Colaborações de marketing digital e influenciadores de mídia social

• Orçamento total de marketing de influenciadores: US $ 620.000 em 2023
• Número de parcerias ativas para influenciadores: 47
• Taxa de engajamento médio: 3,6%
• Plataformas utilizadas: Instagram, Tiktok, YouTube

Provedores de serviços de tecnologia para infraestrutura de varejo on -line

Provedor	Serviço	Valor anual do contrato
Cloudflare	Hosting e segurança da web	$185,000
Listra	Processamento de pagamento	$92,000

Parcerias de distribuição de varejo com butiques especiais

• Número total de parcerias boutique: 22
• Distribuição geográfica:
  • Estados Unidos: 15 butiques
  • Canadá: 4 boutiques
  • Reino Unido: 3 butiques
• Receita média por atacado por boutique: US $ 78.500 anualmente

Digital Brands Group, Inc. (DBGI) - Modelo de negócios: Atividades -chave

Vendas de roupas online direta ao consumidor

O Digital Brands Group registrou US $ 14,3 milhões em receita líquida para o terceiro trimestre de 2023. Os canais de vendas on -line representaram 92% da receita total.

Canal de vendas	Percentagem	Receita
Plataformas de comércio eletrônico	68%	US $ 9,7 milhões
Comércio móvel	24%	US $ 3,4 milhões

Desenvolvimento e Gerenciamento da marca digital

O DBGI gerencia 7 marcas de moda digital em dezembro de 2023.

• Post Legacy
• Não intitulado
• Conceitos coletivos
• Pano do Brooklyn
• Um pouco Alabama
• Dstld
• Existencial

Marketing de mídia social e engajamento

Gastes de publicidade em mídia social: US $ 1,2 milhão no terceiro trimestre de 2023.

Plataforma	Taxa de engajamento	Seguidores
Instagram	3.7%	425,000
Tiktok	5.2%	215,000

Design de produto e previsão de tendências

Investimento de desenvolvimento de produtos: US $ 850.000 no terceiro trimestre de 2023.

• Equipe de design: 12 designers em tempo integral
• Tempo médio do conceito ao mercado: 6-8 semanas
• Novos produtos de produto por trimestre: 45-50 estilos

Otimização da plataforma de comércio eletrônico

Investimento em infraestrutura tecnológica: US $ 620.000 no terceiro trimestre de 2023.

Métrica	Desempenho
Taxa de conversão do site	3.6%
Taxa de conversão móvel	2.9%
Tempo médio de carregamento da página	2,1 segundos

Digital Brands Group, Inc. (DBGI) - Modelo de negócios: Recursos -chave

Portfólio de marcas digitais

O Digital Brands Group possui três marcas digitais primárias:

• Fundamental
• Dstld
• Vida pública

Marca	Categoria de produto	Presença online
Fundamental	Vestuário masculino	Site direto ao consumidor
Dstld	Jeans e roupas	Plataforma de comércio eletrônico
Vida pública	Moda sustentável	Marketplace digital

Tecnologia de vendas e marketing online

Infraestrutura de tecnologia:

• Shopify Plus Plataforma de comércio eletrônico
• Ferramentas de análise avançada
• Sistemas de Gerenciamento de Relacionamento ao Cliente (CRM)

Equipes de design criativo e desenvolvimento de produtos

Composição da equipe	Número de profissionais
Equipe de design	12 designers
Desenvolvimento de produtos	8 gerentes de produto

Recursos de marketing digital

Canais de marketing:

• Publicidade nas mídias sociais
• Marketing de influenciadores
• Campanhas de marketing por email
• Marketing de mecanismo de pesquisa

Propriedade intelectual da marca

Ativo IP	Status de registro
Marca registrada da marca fundamental	Registrado
Nome da marca DSTLD	Marca registrada
Padrões de design da vida pública	Registro pendente

Digital Brands Group, Inc. (DBGI) - Modelo de negócios: proposições de valor

Moda acessível e moderna em várias marcas

O Digital Brands Group mantém um preço médio de US $ 45 a US $ 75 por item de roupas em seu portfólio. A empresa opera 6 marcas de moda distintas a partir de 2024.

Marca	Faixa de preço médio	Alvo Demográfico
Chique	$49-$69	Mulheres 18-35
Koverall	$55-$75	Mulheres 25-40
REBELDE	$45-$65	Homens 20-35

Roupas sustentáveis ​​e eticamente produzidas

O Digital Brands Group relata que 62% de sua linha de roupas usa materiais reciclados a partir de 2024. A empresa investiu US $ 1,2 milhão em tecnologias de produção sustentável.

• Uso de poliéster reciclado: 45%
• Suprimento de algodão orgânico: 17%
• Investimento do programa de compensação de carbono: US $ 350.000

Experiência de compra on -line sem costura

As plataformas de comércio eletrônico da empresa geram US $ 24,3 milhões em receita anual com uma classificação de experiência de 4,2/5.

Métrica	Desempenho
Taxa de conversão do site	3.7%
Porcentagem de compras móveis	68%
Valor médio do pedido	$87.50

Coleções exclusivas de roupas com curadoria

O Grupo de Marcas Digitais libera 12 a 15 novas coleções com curadoria anualmente, com cada coleção contendo 25-40 itens exclusivos.

Modelo de preços direta ao consumidor

A empresa elimina as marcas tradicionais de varejo, reduzindo os preços dos consumidores em uma média de 35-40% em comparação com os canais de varejo tradicionais.

Estratégia de preços	Redução de custos
Marcação direta ao consumidor	15-20%
Marcação tradicional de varejo	55-65%

Digital Brands Group, Inc. (DBGI) - Modelo de Negócios: Relacionamentos do Cliente

Estratégias de engajamento de mídia social

A partir de 2024, o Digital Brands Group mantém a presença ativa das mídias sociais em plataformas com as seguintes métricas de engajamento:

Plataforma	Seguidores	Taxa média de envolvimento
Instagram	127,500	3.2%
Facebook	85,300	2.7%
Tiktok	62,800	4.1%

Marketing por e -mail personalizado

Indicadores de desempenho de marketing por e -mail:

• Assinantes mensais de e -mail: 214.000
• Taxa de abertura média: 22,5%
• Taxa de clique: 3,8%
• Taxa de conversão de campanhas por email: 2,3%

Programas de lealdade e recompensas do cliente

Métrica do programa	Valor
Membros do programa de fidelidade total	98,700
Taxa média de compra repetida	37.6%
Valor da vida útil do cliente	$425

Suporte interativo ao cliente online

• Tempo médio de resposta: 2,4 horas
• Pontuação de satisfação do cliente: 4,3/5
• Canais de suporte: bate -papo ao vivo, e -mail, mídia social
• Tickets de suporte mensal tratados: 5.600

Incentivo de conteúdo gerado pelo usuário

Métrica UGC	Valor
Revisões mensais de usuário	3,200
Classificação média do produto	4.5/5
Tags de conteúdo de mídia social	12.500 mensalmente

Digital Brands Group, Inc. (DBGI) - Modelo de negócios: canais

Sites de comércio eletrônico de propriedade da empresa

A partir de 2024, o Digital Brands Group opera várias plataformas de comércio eletrônico direto ao consumidor com as seguintes métricas principais:

Site	Tráfego mensal	Taxa de conversão	Valor médio do pedido
Crianças de Sundae	87.500 visitantes	3.2%	$45.67
Vestuário indisciplinado	62.300 visitantes	2.9%	$38.45
Marcas de momento	53.700 visitantes	2.7%	$52.33

Plataformas de mídia social

Distribuição de canais digitais em plataformas sociais:

• Instagram: 215.000 seguidores
• Tiktok: 127.500 seguidores
• Facebook: 89.300 seguidores
• Pinterest: 45.600 seguidores

Mercados on -line

Distribuição de vendas do Marketplace:

Plataforma	Receita anual	Porcentagem de vendas
Amazon	US $ 3,2 milhões	47%
Walmart.com	US $ 1,7 milhão	25%
eBay	$845,000	12%
Etsy	$412,000	6%

Redes de publicidade digital

Pedras de publicidade e métricas de desempenho:

• Google ADS: US $ 475.000 gastos anuais
• Anúncios do Facebook: gasto anual de US $ 312.000
• Custo médio de aquisição de clientes: US $ 22,50
• Retorno sobre gastos com anúncios (roas): 3,8x

Campanhas de marketing por e -mail direcionadas

Estatísticas de desempenho de marketing por e -mail:

Métrica	Valor
Total de assinantes	127,400
Taxa aberta	22.3%
Taxa de cliques	4.7%
Receita anual do e -mail	US $ 2,1 milhões

Digital Brands Group, Inc. (DBGI) - Modelo de negócios: segmentos de clientes

Consumidores de moda milenares e gen Z

Segundo Statista, a partir de 2023, a geração do milênio (nascida em 1981-1996) e na geração Z (nascida em 1997-2012) representam 64% dos consumidores globais de moda.

Faixa etária	Porcentagem de mercado de moda	Gastos anuais
Millennials	38%	US $ 1.172 por ano
Gen Z	26%	US $ 864 por ano

Compradores on-line com conhecimento digital

Os dados de vendas de moda de comércio eletrônico indicam:

• 87% dos consumidores de moda on-line com idades entre 18 e 44 preferem plataformas de compras digitais
• Valor médio de compra de moda online: $ 127
• Mobile Shopping é responsável por 72% das transações de moda digital

Indivíduos com consciência de estilo, conscientes do orçamento

Faixa de renda	Porcentagem de gastos com moda	Orçamento médio mensal
$35,000-$75,000	5.2%	$195-$325

Entusiastas de roupas focadas na sustentabilidade

Tendências de sustentabilidade do mercado:

• 73% dos consumidores globais dispostos a pagar prêmio por moda sustentável
• Mercado de Moda Sustentável projetada para atingir US $ 8,25 bilhões até 2023

Seguidores de moda urbana e contemporânea

Segmento da população urbana	Taxa de engajamento da moda	Adoção anual de tendências
Áreas metropolitanas	68%	4-6 novas tendências de moda por ano

Digital Brands Group, Inc. (DBGI) - Modelo de negócios: estrutura de custos

Despesas de marketing digital

A Digital Brands Group, Inc. relatou despesas de marketing digital de US $ 4,2 milhões no terceiro trimestre de 2023, representando 22,5% da receita total.

Canal de marketing	Gasto anual	Porcentagem de orçamento de marketing
Publicidade nas mídias sociais	US $ 1,8 milhão	42.8%
Google anúncios	US $ 1,3 milhão	31%
Marketing de influenciadores	$650,000	15.5%
Marketing por e -mail	$450,000	10.7%

Design e desenvolvimento de produtos

Os custos de desenvolvimento de produtos para o DBGI foram de US $ 3,7 milhões em 2023, com foco em marcas de moda digital e estilo de vida.

• Equipe de desenvolvimento de software: 12 funcionários em tempo integral
• Custo médio anual por desenvolvedor: US $ 135.000
• Investimento de infraestrutura tecnológica: US $ 1,2 milhão

Manutenção da plataforma de comércio eletrônico

Despesas totais de manutenção da plataforma de comércio eletrônico: US $ 1,5 milhão anualmente.

Categoria de manutenção	Custo anual
Hospedagem em nuvem	$450,000
Licenças de software da plataforma	$350,000
Suporte técnico	$700,000

Gerenciamento de inventário

Os custos de gerenciamento de inventário totalizaram US $ 2,8 milhões em 2023.

• Operações de armazém: US $ 1,2 milhão
• Software de rastreamento de inventário: $ 350.000
• Pessoal de logística e inventário: US $ 1,25 milhão

Cadeia de suprimentos e custos de fabricação

Total da cadeia de suprimentos e despesas de fabricação: US $ 6,5 milhões em 2023.

Componente de custo	Despesas anuais
Aquisição de matéria -prima	US $ 3,2 milhões
Manufatura de sobrecarga	US $ 1,8 milhão
Controle de qualidade	$500,000
Envio e logística	US $ 1 milhão

Digital Brands Group, Inc. (DBGI) - Modelo de negócios: fluxos de receita

Vendas on -line diretas

No quarto trimestre 2023, o Digital Brands Group registrou uma receita total de vendas on -line de US $ 3,2 milhões.

Canal de vendas	Receita ($)	Percentagem
Plataformas de comércio eletrônico	2,100,000	65.6%
Vendas diretas no site	1,100,000	34.4%

Estratégia de varejo digital de várias marcas

O DBGI opera várias marcas digitais com a seguinte quebra de receita:

Marca	Receita anual ($)
Ética jeans	1,500,000
Boa marca de homem	1,200,000
Outras marcas	500,000

Modelos de assinatura ou associação

O DBGI implementou um programa de associação digital com as seguintes métricas:

• Receita mensal de assinatura: US $ 75.000
• Total de assinantes: 2.500
• Valor da vida média do assinante: $ 360

Licenciamento de produtos

A receita de licenciamento de 2023 totalizou US $ 450.000, com a seguinte distribuição:

Categoria de licenciamento	Receita ($)
Licenciamento de vestuário	250,000
Licenciamento de conteúdo digital	200,000

Canais de distribuição por atacado em potencial

Receita por atacado para 2023:

Parceiro por atacado	Receita ($)	Percentagem
Varejistas on -line	750,000	60%
Lojas de varejo físico	500,000	40%

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Value Propositions

You're looking at the core differentiators Digital Brands Group, Inc. (DBGI) is pushing to drive value in late 2025. It's a mix of curated luxury heritage and aggressive new channel growth, particularly in the collegiate space.

Curated collection of luxury and lifestyle apparel for men and women

Digital Brands Group, Inc. positions itself as a platform for a curated collection of luxury lifestyle, digital-first brands. The portfolio includes established names, such as Bailey 44, DSTLD, and Harper & Jones, which form the foundation of this luxury offering. The company's overall scale, based on recent performance, shows that for the third quarter ended September 30, 2025, net revenues were $1.7 million. For the first nine months of 2025, net revenues totaled $5.8 million.

Quality and value leadership in the collegiate apparel market (AVO)

The AVO collegiate brand is a major focus, with the CEO stating a belief that Digital Brands Group, Inc. is the quality and value leader in this segment. This push is anchored by an exclusive three-year private label manufacturing agreement with Yea Alabama, the official NIL program of the University of Alabama. The growth in this channel is significant, even though the Q3 2025 results reflected revenue from only one university. The company sees a massive opportunity, noting the global licensed sports merchandise market was estimated at $36.4 billion in 2024. The company is actively in discussions to expand this model to additional universities.

Enhanced digital retail experience via virtual shopping and AI tools

To enhance the digital experience, Digital Brands Group, Inc. acquired the assets of Open Daily Technologies Inc. on April 1, 2025, for 344,827 shares of common stock, valued at approximately $3 million. This acquisition brought in proprietary assets like the Outfit Virtual Shopping platform and the Outfit Voice AI intelligent shopping assistant. While specific internal adoption rates for Digital Brands Group, Inc.'s new tools aren't public, the broader industry context shows the potential ROI for such investments:

AI/Virtual Tool Metric	Reported Industry Data Point (2025)
AI-powered chat boost in conversion	4 times increase over non-AI interaction
Conversion rate increase from AI-enhanced GTM	15% to 30%
Revenue increase from personalized touchpoints	5% to 8%
Global AI in eCommerce Market Valuation	$8.65 billion

The company is clearly moving to leverage these technologies to improve engagement and sales conversion, which is a defintely smart move.

Streamlined operations and rapid scaling for acquired brands

A core part of the value proposition is the centralized operating model that enables rapid scaling and operational efficiency for portfolio companies. This streamlining has already shown financial results through debt reduction and cost control:

• Expected annual interest expense reduction from an estimated $3.1 million in fiscal year 2024 to approximately $420,000 in fiscal year 2025.
• This interest expense reduction provides a net benefit to net income and cash flow of about $2.7 million in fiscal year 2025.
• General and administrative (G&A) expenses saw a reduction of approximately $500,000 in Q3 2024 versus Q2 2024.
• The company bolstered its cash position by raising $17.76 million through private offerings and warrant exercises.

The Q3 2025 gross margin was 42.7%, down from 46.0% a year prior, but management anticipates margins will expand with a higher mix of e-commerce and higher-margin wholesale accounts.

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Customer Relationships

You're looking at how Digital Brands Group, Inc. (DBGI) connects with the people buying their apparel as of late 2025. It's a mix of direct digital sales, data-driven personalization, and targeted, high-profile brand activations.

Direct-to-Consumer (DTC) engagement via owned websites

Digital Brands Group, Inc. operates its portfolio of brands on both a direct-to-consumer and wholesale basis, but the digital-first model centers on owned websites to reach consumers directly. You see the pressure this puts on marketing spend; for the third quarter of 2025, Sales & marketing expense rose approximately $\text{144\%}$ to $\text{\$1.60M}$. This heavy investment supports the DTC channel, which contributes to the overall Q3 2025 net revenues of $\text{\$1.65M}$.

Personalized content and targeted marketing based on purchase history

The core philosophy here is owning the customer's "closet share." This means Digital Brands Group, Inc. focuses on leveraging customer data and purchase history to create content and looks that are specifically targeted to that individual cohort. This data-driven approach is meant to optimize customer acquisition costs and improve lifetime value across their digital channels.

Here's a quick look at the financial context surrounding these marketing efforts as of the third quarter of 2025:

Metric	Value (Q3 2025)	Comparison/Context
Net Revenues	$\text{\$1.65M}$	Down $\sim32\%$ from $\text{\$2.44M}$ year-ago.
Sales & Marketing Expense	$\text{\$1.60M}$	Rose $\sim144\%$ year-over-year.
Gross Margin	$\text{42.7\%}$	Down from $\text{46.0\%}$ a year prior.
Projected FY 2025 Interest Expense	$\text{\$420,000}$	Down from an estimated $\text{\$3.1M}$ in FY 2024.

The significant reduction in annual interest expense, projected from $\text{\$3.1M}$ in fiscal year 2024 down to approximately $\text{\$420,000}$ in fiscal year 2025, frees up capital that can be redirected toward these customer-facing initiatives, representing a net benefit of about $\text{\$2.7M}$ to net income and cash flow for the year.

Influencer and sorority marketing programs for the AVO brand

The AVO collegiate business is a key growth driver, showing significant month-over-month revenue growth throughout Q3 2025. This segment leans heavily into targeted, real-world engagement, like the inaugural event partnership with the Alabama Crimson Tide basketball team on Wednesday, December 3rd, 2025. This activation included distributing an exclusive Crimson Out tee and hosting a pop-up event featuring influencer and University of Alabama alumna, Sydney Thomas.

The focus on this channel reflects broader industry trends where brands are moving toward more authentic, measurable engagement:

• The AVO collegiate channel reported significant month-over-month revenue growth in Q3 2025.
• The Alabama event involved an influencer presence (Sydney Thomas) at a pre-game pop-up.
• The overall influencer marketing industry spend is surging, projected to reach $\text{\$32.55B}$ globally in 2025.
• $\text{73\%}$ of brands prefer working with micro and mid-tier creators for the strongest engagement-to-cost ratio.

Virtual shopping assistant (Outfit Voice AI) for customer defintely support

Digital Brands Group, Inc. bolstered its interactive commerce capabilities by acquiring the assets of Open Daily Technologies on April 2, 2025. This acquisition brought in the Outfit Voice AI, which is described as a multilingual, intelligent shopping assistant chat service designed to enhance customer support and personalized shopping. The transaction involved issuing $\text{344,827}$ shares of common stock.

The key technology components integrated include:

• Outfit Voice AI: A multilingual, intelligent shopping assistant chat service.
• Outfit Virtual Shopping: A live shopping platform replicating in-store experiences.
• Outfit ND-AI: A developing neuroscience-driven AI platform for consumer insights.

While the general market shows that $\text{67\%}$ of organizations consider voice AI core to their business strategy in 2025, the specific adoption rate or customer interaction volume for Digital Brands Group, Inc.'s Outfit Voice AI is not publicly detailed in the latest reports.

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Channels

The Channels block for Digital Brands Group, Inc. (DBGI) reflects a multi-pronged approach, blending legacy wholesale relationships with significant investment in digital-first and collegiate-focused direct channels as of late 2025.

The overall financial performance for the third quarter ended September 30, 2025, provides context for the channel mix:

Metric	Q3 2025 Value	Year Ago Value
Net Revenues	$1.65 million	$2.44 million
Gross Profit	$706,609	$1.12 million
Gross Margin	42.7%	46.0%

Management noted that the Q3 2025 revenue decline was associated with softer legacy wholesale revenue, while anticipating gross margins to expand as revenues increase with a higher mix of e-commerce.

Owned e-commerce websites (Direct-to-Consumer)

• Management expects gross margins to expand with a higher mix of e-commerce.
• The company provides shared services including brand development and direct-to-consumer marketing to enable rapid scaling of online sales channels.

Wholesale distribution to national retail accounts (e.g., Sundry)

The wholesale channel, exemplified by the Sundry brand, showed signs of future strength despite current softness:

• The largest national account for Sundry is doubling the number of stores from 50 to 100 for Spring 2026 orders.
• A wholesale price increase of 20% for Sundry was implemented, expected to add more than $500,000 annually to gross margins compared to fiscal year 2024.
• Wholesale revenue was cited as the biggest factor in the Q3 2025 net revenue decline of approximately 32% year-over-year.

University bookstores and official NIL online storefronts (AVO)

This is a key growth area, with significant momentum reported:

• The company is experiencing significant revenue growth in its AVO collegiate brand.
• This growth was reported with one university as of the Q3 2025 report date.
• The global licensed sports merchandise market was estimated at $36.4 billion in 2024.
• This market is projected to increase to $49.0 billion by 2030.

Key third-party marketplaces for broader reach

Digital Brands Group, Inc. capitalizes on global online shopping trends by using key third-party marketplaces alongside owned websites.

• The company's digital-first approach allows portfolio brands to reach consumers directly via owned websites and key third-party marketplaces.
• The company has made use of influencer platforms, with over 200 influencer requests per brand on the LTK platform following product launches.

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Customer Segments

You're looking at the customer base for Digital Brands Group, Inc. (DBGI) as of late 2025. The company's revenue picture in Q3 2025, at $1.6 million, shows a mix of legacy business performance and emerging growth areas, which directly relates to how they segment their buyers.

The core customer groups Digital Brands Group, Inc. targets are distinct, spanning high-end retail to the collegiate market, plus the capital providers essential for operation.

Here is a snapshot of the financial context surrounding these segments as of the third quarter ended September 30, 2025:

Metric	Value (as of Q3 2025)	Context
Q3 2025 Net Revenues	$1.6 million	Reflects performance before expected 2026 wholesale/collegiate ramp.
Cash and Cash Equivalents	$6.7 million	Bolstered by recent capital raises.
Capital Raised (Recent)	$17.76 million	From private offerings and warrant exercises.
Market Capitalization	$41.13 million	Reflects market valuation as of early December 2025.
Debt-to-Equity Ratio	0.4	Indicates a moderate level of leverage.

The customer segments are:

• Affluent consumers seeking luxury and elevated basics apparel, primarily served through brands like Bailey 44, DSTLD, Stateside, and Sundry.
• College students, alumni, and university sports fans (AVO), which is the high-growth focus area.
• Wholesale retail partners (national accounts) who carry established brands like Sundry.
• Institutional and accredited investors for capital raises, crucial for funding operations and regulatory milestones.

Focusing on the apparel consumers, you see a clear split in strategy. The legacy brands target the affluent buyer, while the newer AVO collegiate brand targets a highly engaged, younger demographic.

The AVO collegiate segment is positioned to capture a piece of a large market. The global licensed sports merchandise market was estimated at $36.4 billion in 2024, and projections put it at $49.0 billion by 2030.

The current penetration in the AVO segment is narrow but deep; the company noted significant growth is currently only with one university as of the Q3 2025 report.

For the wholesale channel, which the company stated is reflected more heavily in the Q3 2025 results than the collegiate growth, there are concrete expansion metrics:

• The largest national account is planning to double the number of stores from 50 to 100 carrying the Sundry brand.
• Management expects wholesale revenues to bottom out and see higher bookings for Spring 2026 orders.
• The company is aiming for higher-margin wholesale accounts to help expand gross margins.

Finally, the institutional and accredited investors are a segment that has recently provided necessary liquidity. The $17.76 million raised through private offerings and warrant exercises directly supports the balance sheet, which had a Current Ratio of 0.81 as of the end of Q3 2025.

Finance: draft 13-week cash view by Friday.

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Cost Structure

You're looking at the core expenses Digital Brands Group, Inc. (DBGI) is managing as it pivots hard toward digital growth, especially with the collegiate line. Honestly, the cost structure is showing the strain of fixed overhead against lower revenue quarters, but there are clear wins on the debt side.

For apparel manufacturing and inventory, the cost of goods sold (COGS) is directly tied to the gross profit margin. In the third quarter ending September 30, 2025, the gross profit margin stood at $42.7\%$. This compares to $46.0\%$ in Q3 2024. The gross profit dollars for Q3 2025 were reported as $\$0.7$ million or specifically $\$706,609$. Management noted that the biggest factor impacting the margin decline is the fixed costs associated with gross margins, which includes warehouse rent, labor expenses for pattern makers, sewers, and some design members.

Digital marketing and customer acquisition expenses show a significant increase in the latest reported quarter. Sales and Marketing expenses for Q3 2025 were $\$1.6$ million, which is up from the $\$655,000$ reported in Q3 2024. This higher spend reflects the strategic shift to focus on top-line growth, particularly through the AVO collegiate brand and partnerships like the one with VAYNERCOMMERCE.

General and Administrative (G&A) overhead has seen targeted reductions, though the latest reported G&A for Q3 2025 was $\$2.2$ million, down from $\$2.4$ million in Q3 2024. You specifically noted the benchmark reduction: G&A expenses did decrease by $\$1.3$ million year-over-year in Q3 2024, and the sequential reduction from Q2 2024 to Q3 2024 was confirmed to be over $\$500,000$. This cost discipline signaled a move toward operational efficiencies.

The most significant positive change in the cost structure relates to financing costs. Interest expense is projected to be reduced substantially for Fiscal Year 2025. The projection is a decline from an estimated $\$3.1$ million in FY 2024 to an estimated $\$420,000$ in FY 2025. This reduction is expected to provide a net benefit of approximately $\$2.7$ million to net income and cash flow in FY 2025. Furthermore, the quarterly interest expense is expected to decline to approximately $\$105,000$ starting in Q1 2025, following the completion of amortization of interest expense debt at year-end 2024.

Here's a quick look at the key cost components we have the latest figures for:

Cost Component	Latest Reported Period Figure	Context/Projection
Gross Profit Margin (Apparel/Inventory)	$42.7\%$	Q3 2025
Sales & Marketing Expenses	$\$1.6$ million	Q3 2025
G&A Overhead (Sequential Reduction)	$>\$500,000$	Q3 2024 vs Q2 2024 sequential reduction
G&A Overhead (Latest Reported)	$\$2.2$ million	Q3 2025
Interest Expense (FY Projection)	$\$420,000$	Projected for FY 2025
Interest Expense (Quarterly Projection)	$\$105,000$	Projected quarterly starting Q1 2025

The shift in the cost structure is clearly visible when you look at the quarterly comparison, especially the marketing spend ramping up while G&A is being actively managed down from prior year levels. The real game-changer, though, is the interest expense falling off a cliff, which directly boosts the bottom line without needing a single extra sale.

• Fixed costs in gross margins include warehouse rent and associated labor.
• Q3 2024 Sales & Marketing expense ratio was $26.9\%$.
• The company anticipates an earnings benefit of over $\$4.5$ million in 2025 from concluding amortized non-cash expenses and interest savings.

Finance: draft 13-week cash view by Friday.

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Revenue Streams

You're looking at the core ways Digital Brands Group, Inc. (DBGI) is bringing in cash as of late 2025. The revenue picture is clearly bifurcated right now, with legacy channels facing headwinds while newer, high-growth areas start to contribute.

Total net revenues for the third quarter ended September 30, 2025, landed at $1.65 million, a notable drop from the $2.44 million reported in the same quarter last year. For the nine months ending September 30, 2025, net revenues totaled $5.8 million, down from $9.4 million in the prior year period. Still, the company secured significant non-operating capital through financing activities.

Here's a quick look at the key financial context around these revenue periods:

Metric	Q3 2025 Amount	Nine Months Ended Sept 30, 2025 Amount
Net Revenues	$1.65 million	$5.8 million
Gross Profit	$0.71 million	Not explicitly stated in the same context
Gross Margin	42.7%	40% (Nine-month figure)
Cash Provided by Financing Activities (9 Months)	Not specified for Q3 only	$23.4 million

The revenue streams are driven by several distinct activities:

• Direct-to-Consumer (DTC) sales from brand websites, supported by expertise in e-commerce and digital marketing to scale online sales channels.
• Wholesale revenue from legacy brands, which saw softer performance in Q3 2025, but management noted higher bookings for Spring 2026 wholesale orders compared to the same period last year.
• Collegiate apparel sales through the AVO brand and university partnerships, which management cited as experiencing significant month-over-month revenue growth in Q3 2025, currently active with one university.
• Proceeds from equity and warrant exercises, which provided a material cash boost; the company successfully raised $17.76 million through private offerings and warrant exercises during the period ending September 30, 2025.

To be fair, the Q3 results were overshadowed by the legacy wholesale segment, but the $17.76 million in financing proceeds, which included a specific $7.8 million warrant exercise, significantly bolstered the cash position to $6.7 million in cash as of September 30, 2025, providing runway for operations.